Financial Factors and the Margins of Trade : Evidence from Cross-Country Firm-Level Data

@inproceedings{Hricourt2007FinancialFA,
  title={Financial Factors and the Margins of Trade : Evidence from Cross-Country Firm-Level Data},
  author={H{\'e}ricourt},
  year={2007}
}
  • Héricourt
  • Published 2007
Using a large cross-country, firm level database containing 5,000 firms in 9 developing and emerging economies, we study how financial factors affect both firms’ export decisions and the amount exported by firm. First, our results stress an important impact of firms’ access to finance on their entry decision into the export market. However, a better financial health neither increases the probability of remaining an exporter once the firm has entered, nor the size of exports. Second, we find… CONTINUE READING
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